VEB.RF and Ulyanovsk Region to Continue Cooperation in Infrastructure Development
During the St. Petersburg International Economic Forum 2019, VEB.RF’s Chairman Igor Shuvalov and Governor of Ulyanovsk Region Sergey Morozov signed an agreement on cooperation between Ulyanovsk Region and VEB.RF. The Agreement provides for the search for and review of investment projects aiming to accomplish priority objectives of social and economic development of Ulyanovsk Region.
“VEB.RF Group has necessary expertise and instruments in place to assist regions in raising investment to modernise their infrastructure. With Ulyanovsk Region, we engage in deliveries of municipal equipment. This Agreement is to further contribute to our cooperation in building a modern urban economy,” VEB.RF’s Chairman Igor Shuvalov said.
“Currently, Ulyanovsk Region implements a number of projects aimed at urban improvement, development of heat supply facilities and full-service maintenance of traffic system. Consequently, this Agreement is pivotal for our region’s development. We have a good track record of efficient cooperation with VEB Leasing in supplies of heating and municipal equipment, and in urban improvement. I am confident that it won’t be long before new projects come to fruition,” Governor of Ulyanovsk Region Sergey Morozov said.
Previously, VEB.RF Group represented by VEB Leasing concluded a five-year state contract for the delivery of municipal equipment. The contract provides for the supply of 98 pieces of special equipment to operate and maintain water supply networks. The first batch of equipment intended for Ulyanovsk and Dmitrovgrad has already arrived in the region. After the contract expires the equipment will become the property of Ulyanovsk Region. The amount of the contract is almost half a billion roubles.
In 2018, VEB Leasing procured a contract for the delivery of some 300 million rouble worth of boiler equipment to Ulyanovsk Region.
VEB.RF and Sovcomflot Sign Financing Agreements for Construction of LNG-fuelled MR Tankers
The VEB.RF Group and Sovcomflot announced the signing of agreements on VEB-Leasing financing the construction of three new generation LNG-fuelled MR tankers at the St. Petersburg International Economic Forum.
Sovcomflot placed the order for three new generation MR tankers with Zvezda Shipbuilding Complex (Primorsky region) on December 28, 2018. Each tanker will have deadweight of 51,000 tonnes. The delivery of the vessels is scheduled for 2022-2023. The tankers will transport petroleum and gas condensate under 20-year time charter agreements with NOVATEK PJSC. The vessels will have Ice Class 1B enabling them to provide safe and reliable year-round shipping in challenging ice conditions, in particular in the Baltic Sea.
The vessels’ technical specifications have been designed to meet international regulations and conventions on emissions of sulphur and nitrogen oxides, and greenhouse gases, which come into effect in 2020. Comparing with conventional bunkering fuels, LNG can significantly reduce the emissions: sulphur oxides (SOx) by 100%, nitrogen oxides (NOx) by 76%, carbon dioxide (CO2) by 27%, low-dispersed particles by 100%.
Sergey Frank, President and CEO of Sovcomflot, said:
“Sovcomflot is one of the world leaders in the implementation of green technologies in the transportation of energy by sea. The company already successfully operates six new generation Aframax tankers powered by LNG. Five more LNG-fuelled vessels have been ordered by Sovcomflot from the Zvezda Shipbuilding Complex and will be built over the next few years. We welcome the plans of Russian shipbuilders to create state-of-the-art large-tonnage LNG-fuelled vessels which, of course, represent the future of shipping.”
“We are pleased that this project is a next step in our positive experience of cooperation with the VEB.RF Group. VEB-Leasing previously participated in financing the construction of a number of Sovcomflot’s leading vessels in Russia, namely Arctic shuttle tankers of the Mikhail Ulyanov series, as well as new generation Aframax tankers being built at the Zvezda Shipbuilding Complex.”
“Shipbuilding is one of the largest engineering industries with significant scientific and technical potential. The support of this industry is one of the priorities of VEB-Leasing and VEB.RF to assist the industrial development of Russia,” VEB-Leasing’s CEO Artyom Dovlatov said.
SCF Group is the largest Russian shipping company and one of the world’s leading energy shipping companies, as well as a provider of services to offshore exploration and oil and gas production. The company’s owned and chartered fleet includes 146 vessels with a total deadweight of 12.8 million tonnes. More than 80 vessels have ice class.
Sovcomflot provides services to the following major oil and gas projects in Russia and abroad: Sakhalin-1, Sakhalin-2, Varandey, Prirazlomnoye, Novy Port, Yamal LNG, Tangguh (Indonesia). The company has its headquarters in St. Petersburg and representative offices in Moscow, Novorossiysk, Murmansk, Vladivostok, Yuzhno-Sakhalinsk, London, Limassol and Dubai.
Today SCF Group’s Green Funnel series of large-tonnage tankers include six oil tankers of the Gagarin Prospekt type (deadweight of 114,000 tones, Arc4). The lead ship in the series won the international Marine Propulsion Ship of the Year Award. In December 2018, SCF Group won Lloyd’s List Global Environmental Award - Individual Company. It was the initiative of Sovcomflot to introduce LNG as the main fuel for large-tonnage tankers that was highly praised by industry experts.
Sovcomflot is one of the largest customers of the Russian civil shipbuilding industry and contributes to localising the production of high-technology vessels in Russia. In recent years, Russian shipbuilders have built more than 20 vessels for Sovcomflot with a total cost of about USD1.3bn. SCF Group successfully cooperates with Russian companies like Zvezda Shipbuilding Complex, Admiralty Shipyard, and Vyborg Shipyard etc.
VEB-Leasing is part of the VEB Group. The Company’s core business is related to leases of modern aircraft, high-technology equipment, railway vehicles, sea and river vessels, motor vehicles and special-purpose equipment. As specified in the Memorandum on Financial Policies, one of VEB.RF’s priorities is contributing to Russia’s economic development by providing lease financing, delivering major infrastructure projects, and growing urban economy, including development of transportation systems, upgrade of housing and public utilities.